A Blueprint For Renegotiating California’s Worst Electricity Contracts
A Consumer/Environmental Agenda
Prepared by William Marcus, Principal Economist, JBS Energy, Inc. for:
Utility Consumers’ Action Network, Environmental Defense,
The Utility Reform Network, Natural Resources Defense Council, Consumers Union and Sierra Club
Table of Contents 2
EXECUTIVE SUMMARY 3
I. The Problem 3
II. The Solution 4
III. What’s In It for Them: Why the Beneficiaries Will Want to Renegotiate 6
I. The Problem: Power Surpluses Threaten Taxpayers, Consumers, and the Environment 7
Causes of the Surplus: Take-or-Pay Provisions 7
Causes of the Surplus: Large Electric Customers Leaving the Regulated Rate Base 8
Too Much of the $43 Billion in Power Is Simply Too Dirty 9
State’s Successful Conservation Program Threatened 10
Renegotiating the CDWR Contracts: A Manageable Problem 10
II. The Solution: A Public Interest Blueprint for Renegotiating The 12 Worst DWR Contracts 12
Five Public Interest Principles for Contract Renegotiation 13
